Google releases Gemini 3.0 model, closes gap on ChatGPT

Core Insights - Alphabet's stock is experiencing an upward trend following the launch of Gemini 3.0, with analysts noting that concerns regarding search traffic have diminished as Gemini's traffic share has doubled year-on-year [1][3] - The AI market remains volatile, influenced by factors such as capital expenditures, rising debt, and circular financing, rather than solely focusing on model quality or traffic [2] - Despite concerns about a potential AI bubble, Alphabet has outperformed other major AI competitors over the past three months, indicating strong investor confidence [3][4] Company Developments - The Gemini 3.0 launch is seen as a significant advancement, integrating deeply with Google's existing infrastructure, including its custom TPUs and cloud ecosystem, which enhances its competitive edge [4][7] - The Gemini app is closing the user gap with OpenAI's ChatGPT, boasting 650 million monthly active users compared to ChatGPT's 700 million weekly users [5] - There is speculation that Gemini 3.0 was developed using Google's TPUs, which could position Alphabet as a strong competitor to Nvidia in the AI inference market [8][9] Market Context - The AI sector is currently facing scrutiny, with comments from Senator Pachai highlighting irrational elements within the trillion-dollar AI boom, suggesting that no company is immune to a potential market correction [3] - Alphabet's recent stock performance has been bolstered by significant investments from notable investors, including Warren Buffett's Berkshire Hathaway [6]